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Retail’s Digital Transformation

Visit SAP NRF Resource Center to see how SAP helps drive infinite opportunity in Retail. http://global.sap.com/campaign/na/usa/CRM-XU16-RET-NRF16ME/post/index.html This deck reviews the strategic drivers for Retail Omni Commerce and how managing this digital transformation requires a new retail mindset.

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1© 2016 SAP SE or an SAP affiliate company. All rights reserved.
NRF BIG SHOW 2016
R E TA I L . D I G I TA L . I N F I N I T E O P P O RT U N I T Y.
J A N U A R Y 1 7 – 2 0 2 0 1 6 | N E W Y O R K C I T Y
2© 2016 SAP SE or an SAP affiliate company. All rights reserved.
NRF BIG SHOW 2016
J A N U A R Y 1 7 – 2 0 2 0 1 6 | N E W Y O R K C I T Y
R E TA I L . D I G I TA L . I N F I N I T E O P P O R T U N I T Y.
©2015 SAP SE or an SAP affiliate company. All rights reserved. 3
The World is Digital and Networked
Last 2 years
90%
Of the world’s data has
been generated1
Last 2 years
40%
Growth in adoption of
business networks2
1 ScienceDaily, May 22, 2013.
2 Technology Adoption Report on Business Networks, Ardent Partners, 2014.
3 Internet of Things (IoT) 2013 to 2020 Market Forecast: Billions of Things, Trillions of Dollars, IDC, 2013.
4 Statista, 2014.
212 billion
End of 2020
“Things” will be connected3
By 2020
9 billion
Mobile users in the world4
In 2014
51%
Of workloads processed
in the cloud5
5 Cisco Global Cloud Index: Forecast and Methodology for
2013–2018, Cisco Systems Inc., November 11, 2014.
©2015 SAP SE or an SAP affiliate company. All rights reserved. 4
Contextual
Personalized
Cross-channel
Digitally empowered consumers shop differently
©2015 SAP SE or an SAP affiliate company. All rights reserved. 5
Retail Omni Commerce
Strategic Drivers
 Increase conversion rates
 Reduce returns
 Improve shopping
experience
 Rapidly implement new
marketing initiatives and
promotional offer types in
all channels
 Provide consistent pricing
across all channels
 Buy, fulfill, return anywhere
 Real-time inventory visibility
 Flexible use of inventory
 Reduce delivery time and
cost
 Reduce zero picks and
cancelled orders
 Consolidate customer data
 Track all customer
interactions
 Connect interactions across
touch points
 Understand preferences,
customer profiles
Product Data
Quality
Consistent
Pricing
360 View of
Customer
Reliable Inventory
Availability
Increase Sales Drive Revenue /Margin Reduce Cost Customer Insight Differentiate
Strategic Drivers
 Provide contextual,
personalized, and
consistent experience
across channels
 Online and in store
Personalized
experience
PROFILE
IMPLICIT
EXPLICIT
RELEVANCE
NORMALIZATION
ENGAGEMENT
LISTENING
BROWSE
CLICK
OPEN
CLOSE
IGNORE
WALK-BY
HOVER
BUY
REGISTER
SUBSCRIBE
RETURN
COMPLETE
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Retail’s Digital Transformation

  • 1. 1© 2016 SAP SE or an SAP affiliate company. All rights reserved. NRF BIG SHOW 2016 R E TA I L . D I G I TA L . I N F I N I T E O P P O RT U N I T Y. J A N U A R Y 1 7 – 2 0 2 0 1 6 | N E W Y O R K C I T Y
  • 2. 2© 2016 SAP SE or an SAP affiliate company. All rights reserved. NRF BIG SHOW 2016 J A N U A R Y 1 7 – 2 0 2 0 1 6 | N E W Y O R K C I T Y R E TA I L . D I G I TA L . I N F I N I T E O P P O R T U N I T Y.
  • 3. ©2015 SAP SE or an SAP affiliate company. All rights reserved. 3 The World is Digital and Networked Last 2 years 90% Of the world’s data has been generated1 Last 2 years 40% Growth in adoption of business networks2 1 ScienceDaily, May 22, 2013. 2 Technology Adoption Report on Business Networks, Ardent Partners, 2014. 3 Internet of Things (IoT) 2013 to 2020 Market Forecast: Billions of Things, Trillions of Dollars, IDC, 2013. 4 Statista, 2014. 212 billion End of 2020 “Things” will be connected3 By 2020 9 billion Mobile users in the world4 In 2014 51% Of workloads processed in the cloud5 5 Cisco Global Cloud Index: Forecast and Methodology for 2013–2018, Cisco Systems Inc., November 11, 2014.
  • 4. ©2015 SAP SE or an SAP affiliate company. All rights reserved. 4 Contextual Personalized Cross-channel Digitally empowered consumers shop differently
  • 5. ©2015 SAP SE or an SAP affiliate company. All rights reserved. 5 Retail Omni Commerce Strategic Drivers  Increase conversion rates  Reduce returns  Improve shopping experience  Rapidly implement new marketing initiatives and promotional offer types in all channels  Provide consistent pricing across all channels  Buy, fulfill, return anywhere  Real-time inventory visibility  Flexible use of inventory  Reduce delivery time and cost  Reduce zero picks and cancelled orders  Consolidate customer data  Track all customer interactions  Connect interactions across touch points  Understand preferences, customer profiles Product Data Quality Consistent Pricing 360 View of Customer Reliable Inventory Availability Increase Sales Drive Revenue /Margin Reduce Cost Customer Insight Differentiate Strategic Drivers  Provide contextual, personalized, and consistent experience across channels  Online and in store Personalized experience
  • 7. Merchandising Merchandising Merchandising Supply chain Supply chain Supply chain Stores Customer touch points Marketing Marketing Marketing E-com Mobile Channels  Put customer at the center of decision making  Align business processes (merchandising, marketing, supply chain, …)  Engage customers consistently across all touch points  Product centric  Organizational silos  Scattered and inconsistent data Managing this digital transformation requires a new retail mindset
  • 8. Integrated Marketing & Personalized Promotions NorthAmericanGroceryRetailerCasestudy • TransitioningfromPhysicalto DigitalWorld • PersonalizingOffersand PredictingProfits • MeasuringMarketing& PromotionEffectiveness
  • 9. Brookshires Grocery SAP CAR Powers Loyalty and Promotions Transformation Watch the Sapphire Presentation and hear directly from Brookshire Grocery: http://events.sap.com/sapphirenow/en/sessions.aspx Reinvigorate Customer Experiences with Innovation in the Grocery Business + $600 / year 21% more likely to stay Core Digitally Engaged CORE SHOPPERS + $675 / year 23% more likely to stay Opportunity 156% more likely to move up to Core Digitally Engaged OPPORTUNITY SHOPPERS
  • 12. © 2015 SAP SE or an SAP affiliate company. All rights reserved.
  • 13. © 2015 SAP SE or an SAP affiliate company. All rights reserved.
  • 14. © 2015 SAP SE or an SAP affiliate company. All rights reserved.
  • 15. © 2015 SAP SE or an SAP affiliate company. All rights reserved. Thank you Contact information:
  • 16. © 2015 SAP SE or an SAP affiliate company. All rights reserved. Thank you Contact information:
  • 17. © 2015 SAP SE or an SAP affiliate company. All rights reserved. Thank you Contact information:
  • 18. Hybris marketing and Facebook: Personalized Marketing at Scale Predictive Analytics Scoring Golden Segment and Custom Audience Personalized Offer / Engagement Campaign Analytics Marketing • Extend your “golden” customer segments by finding look-alikes on Facebook • Create highly personalized offers with closed-loop commerce integration • Manage end-to-end budget and campaign planning as part of the broader marketing mix Facebook Ads Campaign Planning Budgeting
  • 19. ©2016 SAP SE or an SAP affiliate company. All rights reserved. 19Internal Thank you Contact information: Paul Donovan Paul.donovan@sap.com